TEMPO.CO, Jakarta - Rupiah continues to weaken against US Dollar as the market is still waiting for the latest release of US employment data. The data is believed to be able to restore positive perceptions towards the performance of the US economy.
Rupiah weakened by 21.5 points (0.17 percent), dropping to a level of 12,990.5 per US dollar on Wednesday’s trading session.
According to currency analyst Lindawati Susanto, investors are currently anticipating the publication of US employment data as of February, which is expected to record an additional 241,000 employees. The data would clarify the increasing momentum of the Federal Reserves’ (The Fed) interest rate. Lindawati also considers the increasing demand of US Dollar as a measure to anticipate the possibility of lower liquidation rate as a result of The Fed’s new interest rate.
Meanwhile in Indonesia, a regulation that requires non-banking institutions to conduct hedging had also increased demands of US Dollar. Lindawati predicted that the Bank Indonesia interest rate cuts would trigger a negative movement of Rupiah.
